The latest farm business income results have recently been released by DEFRA. They show the average equivalent to “Net Profit” for various farm types. The graph below shows a summary of how the figure is made up for various farm types:
The figures show most farm types with a positive income from the agricultural element of the business except the two livestock systems and mixed farms. If these farm businesses then lost the Basic Payment Scheme (BPS) element of the figures they would be showing a loss overall.
Whilst cereals and general cropping show profits from agriculture, again if you remove the BPS income, they too would be showing a loss. Dairy fares slightly better in that it would still show a small positive position without the BPS income, but overall profit levels would be significantly reduced.
It is also worth noting how small the income from agri-environmental payments is at present. We can expect this to change in the coming years as we shift from direct subsidy payments to ELMS.
The point of all this is “What are you doing now in your business, whilst there is still a reasonable BPS income, to future proof it from a decline in direct aid?” To discuss your options NOW, contact Phil at firstname.lastname@example.org or your local FCG Office.